From left to right: ADB Director General for Southeast Asia Winfried Wicklein, Nusantara Capital Authority Chair Bambang Susantono, Nusantara Capital Authority Deputy of Environment and Natural Resources Myrna Safitri, and ADB Director General for Climate Change and Sustainable Development Bruno Carrasco. Photo credit: Courtesy of ADB
Nusantara, Indonesia’s new capital city, aims to be carbon neutral by 2045, a move that entails massive reforestation, eschewing fossil fuel, greening industry, adopting a circular economy approach, and opting for climate-friendly and regenerative agriculture practices.
City officials launched the Nusantara Net-Zero Strategy at COP28 in Dubai on 3 December.
Focus areas
Under the strategy, the Nusantara Capital Authority (NCA) plans to achieve carbon neutrality by focusing on five areas:
- Forestry and Other Land Uses: Reverse deforestation to reforestation;
- Energy: No fossil fuel for energy, electricity, and transportation;
- Industrial Processes and Production Use: Focus on green building design and material;
- Waste Management: Promote a circular economy approach through a Reduce, Reuse and Recycle system; and
- Agriculture: Create climate-friendly agriculture and boost regenerative agriculture practices to eliminate greenhouse gas emissions.
“Nusantara is the first city in Indonesia to have a net-zero strategy,” said NCA Chair Bambang Susantono during the launch. “It brings us closer to realizing Nusantara’s vision for a modern capital city that aims to balance emissions reduction, green economic growth, climate justice, climate-resilience, and socially inclusive development.”
Nusantara aims to reduce 1.1 million tons of carbon dioxide (MtCO2) emissions by 2045 under the plan, said Antara in a report.
Indonesia has committed to reach net zero by 2060. Regionally and locally determined contributions, which are commitments made by sub-national governments in reducing greenhouse gas emissions, are integral to achieving national climate commitments.
At the onset, Indonesian President Joko Widodo said the government was reserving 70% of the new capital as green areas and will ensure environmental sustainability. This is in line with the country’s target of net-zero carbon emissions and 100% new and renewable energy by 2060. He said the development of Nusantara would begin with “efforts to revitalize and reforest the forests.”
The government envisions Nusantara as a forest city since Kalimantan is a large area in what is known as the Heart of Borneo—rainforests that serve as the “lungs of the earth.”
Susantono also envisions Nusantara as a model city that is green, smart, inclusive, resilient, and sustainable, which can be replicated by other new and existing cities as the world transitions to net zero.
The capital will have a total land area of more than 256,000 hectares, making it 4 times and 3.5 times larger than Jakarta and Singapore. Under the government’s plan, only 25% or about 56,000 hectares will be developed as a green built-up urban area, including an area of around 6,600 hectares to be designated as the government core area.
ADB support
The Asian Development Bank (ADB) supports the development of the net-zero strategy. “ADB is pleased to partner with the NCA in developing this strategy, and in this historic journey of creating Nusantara as a city in the forest with a forest in the city,” said ADB Director General for Southeast Asia Winfried Wicklein in a news release. “The strategy not only presents concrete actions that embody the vision of a modern and sustainable Indonesia, but also represents Indonesia’s tangible efforts in the fight against climate change, contributing to wider climate actions in Asia and the Pacific.”
The Australian Department of Foreign Affairs and International Trade has provided financial support, which is managed by ADB, for the development of the Nusantara Net-Zero Strategy.
The NCA was established in March 2022 and is a ministerial-level agency that reports directly to the Indonesian President. The authority is responsible for planning and constructing the new capital, overseeing the government’s transition to the new city, and eventually becoming its manager.
Indonesia moved its national capital to East Kalimantan to bring it closer to the geographic center of the archipelago to spur development in remote and less developed areas. In the past, infrastructure projects were concentrated on Java and Sumatra.
The new location puts the administrative center of Southeast Asia’s largest economy right in the middle of BIMP-EAGA where it could help drive the subregion’s development and growth.